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Since the float is small, it just emphasizes the idea that rarely anyone is going to get out at the current price if long. If you can envision this, stock prices and volumes to be sold at that (current) price resemble a pyramid. At the ultimate high of any instrument's price, there is only...

This actually, once I reread your post, is your key issue. Its the 80/20 pareto thing. Dude, or my friend, stick with the system you are trading. All the other stuff is meaningless when you can't follow the plan. I think others will echo my sentiment. If you were not a successful scalper...

Well, I am not a futures scalper. But to try to help you, I would do a few things regarding the switch. First, if you can, find someone who trades the timeframe you think you prefer and see what you can learn from their style. Many of the guys who used to be floor traders and moved...

I disagree. When I traded Merger Arb, as a first year guy, I had to get out of the habit of looking at the number of deals I was trading as individual long and shorts. I put a post it note on my monitor to remember to only load the differential or spread chart, and NOT to observe the...

Kinda looks like images of a sweatshop. Also reminds me of the people who lived and worked downstairs in the movie Metropolis.

If we needed to boil this thread down to one post, the post I quote above reflects my experience in both an arbitrage fund office and a prop shop.

No, it is not necessary to have a large some of money to execute a profitable strategy and manage it, especially if you built scalability into your system.

Do you include these posts as well in your admonition? Well, I hope, for everyones sake, the right words come out at the right time, always. Cheers. :)

Schwager mentions that all interviewees have first right of refusal. So if you say anything or he quotes you incorrectly, you have the option to delete it before the printing of the book. You really should read more carefully the books that tell about the people you emulate.

Oh yes, and despite statistics, everyone can blow up. How many of you have your plan in case that happens? What drawdown will you take before you stop trading completely? Who are you going to call? Do you have a plan? When you have that in place, it changes the way you feel about...

It depends on the beliefs you have about the markets. If you believe market behavior is purely random, then my discussion below does not apply. If you believe that then you are not alone. For example I had a college professor who stood on a soapbox for the Random Walk Hypothesis regarding...

Yes....well there is always change. And future performance exists somewhere in that non-existing future. Who knows what will happen....its all uncertainty and I am sure none of us will predict it with much of a measure of accuracy. I could be the end of JH, but it could also be the...

yeah....we will see....i see your point. I just think for JH this isn't unusual and for him, he has been here before.

Yes I am pretty sure. You can read books that clearly show this. I know some of his peers and competitors personally, and the characteristics I mention are very accurate. I hope this information enlightens you and you don't choose to argue about it. Your rationale that you would be...

Thats really my point. He KNOWS to expect these drawdowns, and he can still operate WHEN they occur. That is the key to trading...or one of the ones most salient to me. Each of us here benefits from knowing that we can handle the volatility of our own trading methods (assuming a positive...

UH....well 35% is part of the volatility in his system. If you can't hold through 35% drawdown, you can never reap the extraordinary returns he has posted in his career. You then don't get to buy the Boston Red Sox, and run the team the way you run your trading, with statistcally programmed...

This quote exemplifies the apparent paradox of trading, amongst a few other gems. The first is that the markets are always the same because change is constant. But more practical to trading is the apparent paradox. For example, if you look at trading as a probability game, you know that...

I must be getting older, or more wise, or more businesslike. I generally don't read these threads but I guess I had to have a taste of the old. I think its the tone of most of the responses, not all. Business models change, as profitable traders are businessmen. Does the argumentative...

I hope this isn't construed by the management as solicitation, as my other offers of help were by the mediators of this board. If you want to discuss the topic, I am open to it. Last time I offered something like this I was shut down hard by the mediators of the board, I think they got scared...

I somewhat disagree. I mean...i disagree with your conclusion, because you may expect somebody to teach you a winning system involvine pairs. I agree that pair trading, as people generally think about it (stat arb..etc) is too well known and the obvious relationships no longer really make...